Winter Olympics puts spotlight on Asian ski properties

View of the historic canals in Otaru, which is located close to the ski slopes of Kiroro.

Located on Japan’s Hokkaido island, Kiroro is emerging as a top destination for winter sports and activities and boasts one of the world’s best powder snow.

By Romesh Navaratnarajah

With the world’s gaze tuned into the 2018 Winter Olympics in PyeongChang, South Korea, many people want to experience what it’s like to frolic in the snow, especially those from tropical countries like Singapore. It’s no wonder that some investors are on the lookout for ski properties.

In Asia, one of the most famous destinations for winter sports and activities is Kiroro on the island of Hokkaido in Japan. As matter of fact, the place is ideal for skiing as it boasts one of the world’s best powder snow with a depth of 21m on long average.

Originally, Kiroro was discovered by Yamaha Corporation in 1981 in their search for this kind of snow. They then transformed it into a ski resort and built two hotels.

In 2012, the resort was purchased by Property Perfect, one of Thailand’s top five real estate developers. While some remnants of the original development remain like the Love Bell, the company upgraded the two hotels and rebranded them.

These are now known as The Kiroro, a five-star hotel under the Tribute Portfolio, and the four-star Sheraton Hokkaido Kiroro Resort, which was named as one of the Top 10 Best Family Resorts in Japan by the Holidayswithkids website in 2017.

Bright prospects

According to Kiroro Resort Development President and Representative Director Benjamin Lam, they have major plans for the resort.

“We are committed to preserving Kiroro’s beauty for future generations and have carefully considered a development plan, which includes an investment of more than 100 billion yen (S$1.24 billion) over the next 10 years.

“The plan includes expanding our residential and hotel offerings, as well as building more ski runs, trails and chairlifts, to enhance the exclusivity of the Kiroro experience,” he said.

At present, the resort features 11 restaurants plus a total of 422 suites and guestrooms. But by the end of 2019, Property Perfect’s subsidiary Kiroro Resort Holdings expects to complete Yu Kiroro, a freehold luxury condominium spanning 6,400 sq m.

The development will come with 108 units, with layouts ranging from one-bedders (62 sq m), two-bedrooms units (84 to 127 sq m), three-bedders (122 to 140 sq m) and penthouse (267 sq m).

“Singaporeans have sophisticated and discerning preference for vacations, hospitality, and a general yearning for a snow lifestyle and investment. With an estimated yield of around three percent to five percent per annum, we expect to see their interest piqued in Yu Kiroro and what Hokkaido has to offer”, noted Lam.

Hokkaido is known for its ski slopes and powder snow.

Affordable price tag

The developer revealed that unit prices in Kiroro are about US$12,182 per sq m (psm) or around S$15,984 psm. Comparatively, high-end homes in Singapore fetch US$18,900 (S$24,799 psm) and these have a gross rental yield of 3.22 percent.

It also highlighted that condo prices in Hokkaido have increased by 12.5 percent in 2017 and 71.4 percent since 2010. In comparison, that in Tokyo rose five percent last year and 30.7 percent since eight years ago.

Aside from that, all homeowners in Yu Kiroro will have access to various facilities in the exclusive Ski Centre and Owner’s Club. The latter comes with all-day dining options, a gym, family rooms and children spaces along with indoor and outdoor onsens. Aside from the ski valet that lets people ski-in and ski-out with convenience, unit owners don’t have to worry about renting out their units as these will be overseen by property managers.

The project is currently marketing in Singapore by Knight Frank.

Easy accessibility

Yu Kiroro is a 30-minute drive from Otaru city, 60 minutes from Sapporo city and less than 100 minutes from New Chitose Airport. The resort also receives 21m of snow fall per annum, while the trails there are covered with pink cherry blossoms during the summer.

Meanwhile, an October 2016 report by property consultancy Savills revealed that Hokkaido’s Niseko town near the dormant volcano Mt. Yotei is another top destination in Japan for winter sports and activities.

“Known for its plentiful powder snow, Niseko is Japan’s premier ski resort. It has been at the front line as Asia’s growing middle classes make their first foray in to overseas skiing,” said Savills.

In fact, the ski resort is popular among tourists from Asia Pacific, with Asians and Australians each accounting for 41 percent of its visitors in the 12 months through July 2015.

Specifically, Singaporeans made up nine percent, while those from China, Hong Kong and other parts of Asia collectively accounted for 32 percent, noted Savills, adding that many Chinese see skiing as a status-enhancing activity. In comparison, those from North America and Europe only made up five percent and six percent respectively.

Looking ahead, the property consultancy believes that prime ski resorts will continue to attract many tourists, especially those with diverse offerings like retail, spas and restaurants, as well as other activities such as skating, sledding and horse carriage riding.

FAST FACTS

Population: Approx. 5.5 million

Total area: 83,454 sq km

Currency: Japanese Yen

GDP per capita (Japan): US$39,000

GDP growth (Japan): 1.0 percent

Future transport: Expansion of the bullet train line

Distance from Singapore: 6,046km

INTERNATIONAL HIGHLIGHT

Nestled in Kiroro, Hokkaido, Yu Kiroro offers buyers and investors the opportunity to own an affordably priced ski-in ski-out condo unit.

NEW PROJECT

Yu Kiroro

128-1 Aza-Tokiwa, Akaigawa-Mura, Yoichi-Gun Hokkaido

Strategically located in Hokkaido’s ‘Golden Triangle’, this 108-unit luxury condominium is nestled amid the pristine scenery of Kiroro Resort. Its ski-to-door location coupled with the area’s powder snow is what ski aficionados spend their days dreaming about.

There are a range of unit types on offer, including one- to three-bedroom apartments and two penthouses that feature a Japanese alpine inspired design. All units are fully furnished and offer gorgeous views of the resort or surrounding mountains.

Aside from skiing, there are a range of other activities for residents, including a family-friendly snowsports area, natural onsen hotsprings and an abundance of gourmet food.

Type: Ski-in ski-out condominium

Developer: Kiroro Resort Holdings

Facilities: Ski valet, all day dining, indoor/outdoor onsen, fitness centre, 24-hour concierge service

Nearby Key Amenities: Restaurants, shops, ski areas, tourist attractions in Otaru

Nearest Transport: New Chitose Airport

Starting Price: 70 million yen (Approx. S$858,316)

			This article was first published in the print version PropertyGuru News & Views. Download PDFs of full print issues or read more stories now!